Buy Visaka Industries, target price Rs 850: Anand Rathi

Anand Rathi has buy call on Visaka Industries with a target price of Rs 850. The current market price of Visaka Industries Ltd. is Rs 585.65.

Time period given by analyst is one year when Visaka Industries Ltd. price can reach defined target.

Visaka Industries Ltd., incorporated in the year 1981, is a Small Cap company (having a market cap of Rs 959.60 Crore) operating in Building Materials sector.


Visaka Industries Ltd. key Products/Revenue Segments include Asbestos Cement Products, Scrap, Export Incentives and Other Operating Revenue for the year ending 31-Mar-2021.


Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 294.47 Crore, down -16.16 % from last quarter Total Income of Rs 351.25 Crore and up 28.75 % from last year same quarter Total Income of Rs 228.72 Crore. Company reported net profit after tax of Rs 23.86 Crore in latest quarter.

Investment Rationale
The brokerage introduces FY24e and retains Buy rating, with a TP of Rs.850, assigning a 9x multiple to FY24e EPS. Risks: Rise in input costs, demand slowdown.

Promoter/FII Holdings
Promoters held 45.85 per cent stake in the company as of 30-Sep-2021, while FIIs owned 5.6 per cent, DIIs 0.04 per cent.